Trading Down

Trading down is a common term in the real estate business. The typical example relates to 'empty nesters' who no longer need a huge home after the kids move out, or as it relates to our current economy, where people are downsizing their homes (and lifestyles) to save money. When money is tight, people change their habits and consume less/borrow less (I sure wish our government would figure that out, but I digress!). This trend is no different in the wine business. Retailers say that the over $20 market is dead and restaurants are selling less by the bottle versus by the glass (which ironically is a higher markup than by the bottle). Either way, this is a shift in consumption habits and it can create some opportunities for bargains! For example, many restaurants are offering half-price (or other similar discounts) bottle sales on special nights. Wine shops are using closeouts to move older products. Even California vineyards are using '2nd labels' like France's Bordeaux region (e.g. Chateau Lafite-Rothschild and Carruades du Lafite) or selling off some of their production to people like Cameron Hughes that I talk about all the time (even the Wall Street Journal talks about his wines, not just what you can find today at Sam's Club). There are still bargains to be found--even for 'name-brands'. A recent AJC delivery included flyers from Sherlocks (Chateauneuf du Pape for under $25?) and Bullock's (Ravenswood Vintner's Zin for under $7) and last week I found several fun deals (as always) from Total Wine and More. Other local retailers such as Pearson's and Tower send email deals so be on the lookout for specials. Just remember that trading down in price shouldn't mean you have to trade down in quality! Ask for suggestions at your local retailer; most have great staff members to help! Keep an eye on my wine blog as I put tips on there from time to time (and I plan a post called "The $10 Connoisseur" listing some fun wines for $10 and under (thanks for the idea, John!). Cheers, Bo